Budgeted overhead for Cinnabar Industries at normal capacity of 30000 direct

Budgeted overhead for Cinnabar Industries at normal capacity of 30000 direct labor hours is $4.50 per hour variable and $3 per hour fixed. In May $232500 of
overhead was incurred in working 31500 hours when 32000 standard hours were allowed. The overhead controllable variance is

$7500 unfavorable.

$3750 favorable.

$7500 favorable.

$1500 favorable.

Budgeted overhead for Cinnabar Industries at normal capacity of 30000 direct labor hours is $4.50 per hour variable
and $3 per hour fixed. In May $232500 of overhead was incurred in working 31500 hours when 32000 standard hours were allowed. The
overhead volume variance is

$7500 favorable.

$6000 favorable.

$8250 favorable.

$3750 favorable.

Which of the following is true if a company can accept a special order without affecting its regular sales and is within
plant capacity?

Net income will not be affected.

Additional fixed costs will probably be incurred.

Net income will decrease.

Net income will increase if the special sales price per unit exceeds the unit variable costs

Cara Industries incurred the following costs for 50000 units: Cara has received a special order from a foreign company for 5000 units. There is sufficient capacity to fill the
order without jeopardizing regular sales. Filling the order will require spending an additional $4250 for shipping. If Cara wants to break even on the order what should the unit sales price be?

$4.20

$5.05

$2.65

$1.80

Cara Industries incurred the following costs for 50000 units: Cara has received a special order from a foreign company for 5000 units. There is sufficient
capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an
additional $4250 for shipping. If Cara wants to earn $4000 on the order what should the unit price be?

$2.60

$1.65

$5.85

$3.45